Small Update

FCX is relatively flat today as the stock consolidates around the 7 day moving average. The bounce in the US dollar is putting only minor pressure on metals like gold and silver and appears to be providing an excellent buying opportunity on the pull back. I am looking to add another upside trade into the close or by the morning tomorrow.

I find it interesting the buzz online regarding the market. A common argument from the bears is that the market bounce last week will fail due to the lack of volume. I am very careful with this type of analysis. Since 2009, low volumes in the market have typically led to rallies, not declines. With the growth of etfs, options, black box trading, currency hedging, and futures trading, stock market volumes have lost the level of significance they had years ago. Individual stock volumes are still critical in technical analysis but market volumes can be a bit misleading especially around the holiday trading season.

Stocks are only slightly off their highs and small cap stocks are bullishly leading the way. As long as the market holds onto the 1390 bulls maintain the advantage. I suspect buyers will step in more aggressively if the market breaks above 1408 level that it has tested over the last 3 days. On my radar of stocks to buy are GLD, TCK, CAT, XOM, XLF, and V. I’m looking for an entry and would love to have some funds left to buy if the market does approach the 1390-1395 level.